Mark Saunders Property Owner Lawsuit at SeaScape - Bad Advice?

Other than throwing Wilmington North Carolina real estate developer Mark Saunders off the SeaScape at Holden Plantation POA board of directors, what could property owners at SeaScape expect to financially gain from a developer who has a long list of pending litigation against him and Coastal Communities? We say take a number and don’t expect to see a dime. What this property owner lawsuit has done is expose to buyer's searching for waterfront properties in North Carolina at SeaScape at Holden Plantation to the following issues:

• Defects in the marina’s seawall - repair estimates $2.8 million 

• Community water features at low water levels 

• Lawsuit filed by SeaScape POA against Mark Saunders - estimated legal costs $300k 

Based on our calculations, SeaScape property owners should expect a big special assessment when this is all said in done, to the tune of about $10,000 per property owner. This is assuming the North Carolina state regulatory and licensing boards doesn't find more code violations that must be repaired.

Here at Community Finder, we will never recommend legal action as the solution to disgruntled property owners. Giving lawyers a blank check is too risky. I’ve served as President on the Board of Directors for a POA and seen how easily property owners quickly turn to legal action for a solution. I’ve also seen board's take the bull by the horns, making the hard decisions moving forward by fixing the repairs and assessing property owners.

We caution buyer’s searching for waterfront properties in North Carolina who are considering SeaScape at Holden Plantation, to be aware of this financial burden which may fall upon you because of the Mark Saunders lawsuit, if you purchase property at SeaScape hoping to enjoy one of the few Wilmington marinas. We included SeaScape at Holden Beach as one of Community Finder’s best master planned communities because the Wilmington North Carolina real estate development is beautifully designed and is in a great location just west of the barrier island. Our position has not changed.

Lesson learned here going forward. Buyer's would be wise to review the POA documents before purchasing property, when the real estate developer still has control of the board. Do the documents allow the developer to be removed from the board by the other board members because of negligence and faulty workmanship confirmed by code violations issued by building inspectors? Real estate developer's typically create the POA documents, so it's unlikely we'll ever see a clause allowing a board to extricate him or her.

Working with a POA is not easy and is a thankless job. It’s hard to get all property owners to agree on a decision. However, a Board of Directors must look at the big picture and have a bird’s eye view on the well being of the gated community. The board is responsible to educate property owners about all the implications possible of serious decisions, like initiating legal action. When legal action takes place at a master planned community, it can take years for the stigma to disappear after the issues are resolved and this may financially effect property owners who want to sell their homes during this time. Buyer's searching for Wilmington North Carolina real estate will likely choose not to get involved with this property owner lawsuit and may choose to buy elsewhere for a waterfront home in Brunswick County.

We’ll keep you posted on this lawsuit’s progress. You’re invited to share your comments on how you feel about this Mark Saunders SeaScape lawsuit.